Small Business Finance News

California State Senator Looks To Help Out Small Businesses

With California's unemployment rate continuing to run at over 11 percent, good news for small businesses has been hard to come by.

With California's unemployment rate continuing to run at over 11 percent, good news for small businesses has been hard to come by.

Now, California State Senator Sharon Runner, a republican from Sacramento, California, has authored Senate Bill 640. The legislation that would provide incentives for small businesses that hire people on unemployment, according to KHTS-AM, a California radio station.

The Personal Income Tax Law and Corporation Tax Law, if passed, would provide up to $6,000 for each employee hired to small businesses with a total of 50 or fewer employees, the news source said. The bill would take effect as a tax levy, according to Aroundthecapital.com, and would offer a total of $50 million in tax credits across the state.

"With the high cost of doing business in California, small businesses are hesitant to take on the additional financial risk of hiring new employees," Runner told KHTS. "It is imperative that employers be given incentives to hire."

The bill passed the Senate Governance and Finance Committee with a 6-2 vote, according to the news source. Runner told fellow lawmakers that encouraging businesses to hire the unemployed will lift spirits in communities across California.

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